“A Home” is one of the biggest investment you can make in a lifetime! Big or small, a home can mean so much. If you are planning to buy a home in 2017, there are few things you should keep in mind.
#1 Know Your Credit Rating
Regardless of when you buy a property, you must focus on your credit scores. Credit reports can be obtained from three different organizations: The TransUnion, Experian, and Equifax. These organizations will tell you if there are serious credit issues. The credit score depends on many factors. If you are financially stable and debt-free, your credit scores will be remarkably high. But, there can be errors in these reports. This is why you should keep track of your credit ratings.
#2 Set a Budget
Two, you need a firm budget. Without a budget, you will not know how much you can afford to spend. There are many online tools and techniques to help you set a budget. Try to estimate an accurate value. The budget should depend on your income, credit, and debt. Also, you figure out how the property will be financed. As a golden thumb rule, your new home must not exceed 2.5 times your annual income. And, the interest should not exceed 35% of your income every month.
To buy a home in 2017, you must have plenty of cash. Try to line up all the costs involved. For instance, you must line up the documentation fee, registration charges, down payment and closing fees. Most sellers will request a down payment of 20%. If you are able to make a bigger down payment, you will save on the loan. Even if you have less, the loan can support you. There are many public and private agencies to help you with the finances. If you qualify for a loan, the down payment can be as low as 3%.
#4 Property Hunt
Finding homes in 2017 is not an easy task. You need professional help. That is why you must hire a skilled real estate agent. This is a budding industry with so many players. Look for sellers who can understand and satisfy your requirements. Talk to the agent! The agent must be aware of your needs, budget and financial status. When you provide the right details to an agent, you don’t have to worry about the search. The agent will find and filter properties on your behalf. They will pay close attention to your specific needs. For instance, if you have elders in your family, they will look for properties with nearby medical facilities. Likewise, if you have children, they will focus on properties near schools.
#5 Making the Final offer
The moment you find a satisfying home, make an offer. The offer should be made as quickly as possible. Ask the agent for advice. Next, you must build a strategy for yourself. There is no such thing as a foolproof technique for price negotiation. Often, the agent and the buyer must negotiate with the seller. When you work with intermediaries, you have a better chance of reducing the final price. Use your creativity and convince the seller.
#6 Signing the Deal
Once the price and property are finalized, you must sign the contract. Real estate agents and attorneys should review the document. The purchase will be contingent upon:
- Approved mortgage.
The Final Steps
As mentioned previously, you must make an initial down payment or a good-faith deposit. Most sellers demand 1 to 20 percent of the sales price. Once the contract is signed, you will be able to secure the loan and close the deal.